Short Analysis from Well-Known Auto Repair Shop Specialists in Mt Pleasant, MI
Car depreciation can cause a new car to lose its value at an alarming rate. This, actually, is the decline in an automobile’s value over the course of its useful life. New-car buyers may dread this, but new cars lose between 15 and 20% of their value each year. Here are some additional new car depreciation numbers presented by our auto repair shop specialists:
- As soon as you drive a new car off the parking lot its depreciation starts with as much as 11% of its value.
- About 65% is the average depreciation after 5 years.
Let’s say that you have paid for a new automobile $25,000. Driving even one mile out of the auto store will lower its value to $22,220. After a year, the same car will be worth about $18,800. After another year, the price will drop to $15,950. One more year and you will be able to sell it for no more than $13,500. Four years later, this price will fall to $11,300. And on the fifth year, after you have bought ,it will cost no more than $9,300.
Many people believe that buying used cars will cost them more annual visits to an auto repair shop but that is not necessarily the case at all times. Here are a few benefits of buying used autos:
- The majority of the savings are simply due to depreciation.
- You will not suffer because you cannot recover the money for depreciation.
- You will pay less for insurance, taxes, and monthly payments.
- You can find recent models that are still under warranty, so you may not have to worry about the reliability of the used car you have bought.
- Buying some old car models with solid reputation may be a better choice than a new model for which you have no information.